A homeowners insurance policy will probably not cover the cost of a new water heater if it stops working and you are only getting cold water. If you look at any standard home policy, you will see that you are only covered for certain perils. It does not pay to repair or replace broken appliances, air-conditioners or water heaters.
If you go away for the day and come back to discover that your water heater exploded, shattered a window, and flooded your entire first floor, your homeowners insurance will pay for the resulting damage. Depending on the terms of your policy, they may or may not pay to replace and install a new water heater. Damage caused by broken pipes, kitchen fires, and other things that you don't expect to happen, are usually covered by your homeowners insurance policy. Damage caused because of your negligent or intentional acts are usually not covered.
So, if you decide to unscrew the service panel and ignore the warning that your water heater should only be serviced by a professional, you are assuming the risk in case something goes wrong. If you short-out the heating element, or even worse, electrocute yourself, your home insurance will be of no help, but your beneficiaries might collect on your life insurance policy.
There are some instances where you will be able to receive a brand new water heater courtesy of your insurance company. If there is a fire that destroys your water heater, you can file a claim under the contents portion of your home policy. If any covered peril causes your water heater to break and no longer be able to do the job it was intended to do, you will be reimbursed. If you want insurance in case your water heater breaks, you can always purchase an appliance service policy. Contact us today to learn more!